Broker, investor and developer Vivian Dimond this week closed her $ 102.5 million sale of Hollywood East, a 247-apartment building that she acquired four years ago as a distressed asset and s’ returned, learned The Real Deal.
New York-based GMF Capital bought the 15-story building at 2165 Van Buren Street in Hollywood for about $ 413,000 per apartment, in an off-market deal.
“It was never actually on the market, but the deals kept coming in,” Dimond told TRD.
Aaron Jungreis, founder of New York-based Rosewood Realty Group, negotiated the deal, representing both GMF Capital and the seller, Hollywood East LLC, controlled by a group of investors led by Dimond.
Jungreis said he started trying to negotiate the sale of Hollywood East about a year ago.
“I’ve been working there for almost a year. I finally found the right buyer, ”he said. “We closed seven deals in Florida this year, close to $ 500 million. Everyone loves Florida now…. We have another [multifamily] transaction closed next week for $ 77 million in Gainesville.
Like other South Florida rental properties, Hollywood East has benefited from the immigration of new residents from states with high income taxes, said Dimond, the management broker for Brown Harris Stevens in the Miami area.
“A very high percentage of the renters we have are from New York or California,” she said. “Some of the apartments, they rented them blind, which we are not used to in Miami.”
Hollywood East had a 96% occupancy rate as of December 15. Monthly rents start at $ 2,060 for apartments with two bedrooms and two bathrooms, or one bedroom and den.
Dimond and his group of investors took over the partially constructed development in 2017 and completed it last year as a rental apartment project.
The original developer marketed the project as a condominium under its old name, H3 Hollywood, and then stopped paying subcontractors, which halted construction on the 15-story building on the 13th floor.
LB Construction of South Florida, the original general contractor for the project, submitted the winning bid for the project assets at a foreclosure auction in April 2017. The general contractor made an “offer of successful credit ‘which was $ 250,000 more than its judgment of $ 15.8 million for an unpaid lien against Hollywood Station Investments, the original developer.
LB Construction then transferred ownership of the project assets to Dimond and his group of investors in exchange for its commitment to pay the invoices of 34 unpaid subcontractors.
Dimond also partially reimbursed people who were thinking of buying condos at H3 Hollywood and made deposits on 150 units totaling nearly $ 20 million. Pre-construction prices started at $ 250,000 per unit.
To make it easier to secure construction financing, she and her investors paid off a first mortgage on the property with an outstanding balance of $ 7.3 million.
The $ 102.5 million payment to Hollywood East hit his bank account on Tuesday morning, Dimond said.
“I’ve come a long way,” she said. “And boy, did I win it?” “